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STATEMENT 



Property and Estate of Union College, and 
its Liabilities, 



The Alumni Trustees, at the request of the Alumni 
Association, and with the acquiescence of the Board of 
Trustees, recently prepared and printed a statement of 
44 the financial condition of the College, and especially 
of the receipt and disbursement of funds for the past 
ten years " — 1871 to 1881. 

This statement, by resolution of the Alumni, was re- 
ferred to the Board of Trustees, with the request that 
they "supplement the same by a statement showing the 
present financial condition of the College, the character 
and value of its property and the increase of the same 
during the past ten years." 

The Board of Trustees desire to say that so far as the 
statement of the Alumni Trustees sets forth items of 



assets and liabilities of the College (not including Nott 
Trust, so called), and of moneys donated to the College, 
and of expenditures, the same appears to be accurately 
compiled from the Treasurer's books. 

It is proper, however, to direct notice to the fact, which 
might escape attention in reading the report of the 
Alumni Trustees, that every donation to the College for 
permanent investment is, by its system of bookkeeping, 
treated as a liability. Thus, when the James Brown be- 
quest to the College of $80,000 was received, the College 
charged itself with an added liability on account of the 
James Brown fund of $80,000. So that the same fund 
which in fact added $80,000 to the capital, also increased 
the liabilities $80,000. The College became in fact $80,- 
000 richer, but the asset being placed upon the debit 
side of the account, and the liability upon the credit 
side, the net capital, being the excess of the credit over 
the debit side, would not appear to be increased. In 
other words, the net capital is the surplus over and above 
all endowments and donations for revenue, and debts of 
the College. When the Alumni Trustees state, upon 
page 5 of their report, that there has been during the 
past ten years a " real loss of capital $106,319.36," they 
state a result which may leave the impression upon the 
mind that the College is poorer by $106,319.36 than it was 
ten years before, when in fact the tables of figures set forth 
in their report, from which they deduce that result, show 
that the College is actually richer by $151,429.49 ; to 
which if we add the amount which the same report states, 
on p. 23, has been used for " permanent expenditures," 
namely, $147,683.43, it is seen that the College is actually 
richer than it was ten years before by $299,122.92. 

This explanation seems necessary in order that the 
impression created by the unexplained statement that 
the College has sustained so large a reduction of capital 
may not alarm the friends of the College. 









3 



The Board of Trustees, while admitting the right ox 
individual criticism as to the wisdom of some of the 
expenditures, refer with pleasure to the evidence which 
the report of the Alumni Trustees affords of the gener- 
ous liberality of the friends of the College, whose gifts 
for the ten years ending May 31, 1881, are therein re- 
corded to the amount of $382,254.74 (p. 23). Since that 
date the Powers and Washburn Memorial Hall has been 
erected at a cost of $41,000, wholly defrayed by dona- 
tions for the purpose. 

The Board of Trustees, respectfully complying with 
the request of the Alumni, proceed to supplement the 
report of the Alumni Trustees, as follows: 

The property of Union College consists : 

SCHEDULE I. 

Of the College domain, buildings thereon, apparatus, 
library, museums, collections and miscellaneous personal 
property connected therewith. The actual cash cost of 
all this property, exclusive of interest, and exclusive of 
the time and labor of the various members of the Fac- 
ulty, is estimated at $609,948.97. 

This estimate is made as follows : 

On the 5th day of April, 1849, tne .then Treasurer of 
the College, Mr. Holland, reported under oath to the 
Legislature that " the College buildings, grounds, &c, 
&c, amounting to about 280 acres lying in immediate 
connection with said buildings and adjoining the com- 
pact part of the city, have cost, irrespective of interest, 
$296,481.31;" that " the library and philosophical and 
chemical apparatus have cost, irrespective of interest, 
$32,817.39." Making a total of $329,298. 70. 

The college has devoted to sale about 100 acres of the 
more remote and least expensive of the lands embraced 
in the report quoted. This is estimated to have origin- 
ally cost the College $4,000, deducting which leaves the 
total cost in 1849, $3 2 5> 2 9 8 -7°- 



4 

ft is proper to remark that Prof. Pearson, irr his report 
to the Board of Trustees in 1858, estimated the cost at a 
smaller sum ; he made liberal allowances for depreciation 
and cost of repairs, which last he assumed had been car- 
ried into- the construction- account. Regard' being had 
to the appreciation' in values and extensive repairs, it is 
believed the report of 1849/ may be accepted as not an 
over-statem-en-t of what it would cost to reproduce this 
property. It would be difficult to- fix" its value in a 
commercial sense. It is- a college plant, stored with the 
accumulations of time and industry, which money can- 
not always secure, nor properly measure. 

Since 1849 tn ' e following buildings have been erected : 

BEFORE 1872. 
The Philosophical Hall, N. Col- 
lege.,,, ,,..$'7,741 00 

The Natural History Hall, S. 

College ...... , . 10,25 1 00 

President Nott's house. ........ 10,047 OO 

Foundation of Memorial Hall.,. 2,238 00 

$30,277 00 

SINCE 1872. 

Memorial Hall. . . , . . . .$107,019 00 

Gymnasium . . 6,537 °° 

President Potter's house. . .. .. 17,052 00 

-Mr. Benedict's house 10,000 00 

Powers and Washburn Hall. . , 41,000 00 

■ 181,608 00 

And expended for opening Union avenue, 

water supply, drainage, gas, &c 6,500 00 



$218,385 00 
Value of gifts and collections and amount of expendi- 
ture since 1849 f° r tne following purposes : 

*This house i.s subject to the life estates therein of Mr. B. and wife. 



3 

Library additions before 1872 $1,488 22 

Analytical laboratory apparatus . . .. . . 7,760 29 

The Wheatly collection of minerals and 

shells, with cases . ... . ... . ... 12,000 OQ 

$21,248 $1 
Since 1872: 

Library additions., . ....,- $16,88476 

Philosophical apparatus. 9,625 00 

Natural history collection, and 

cases, est ...... 3,000 00 

Geological collection, est 1,000 00 

Engineering apparatus . 1,007 °® 

Architectural designs and appa- 
ratus, est.. — 1,000 00 

Art and archaeological collec- 
tions, est 2,500 00 

Furniture and miscellaneous, est. 10,000 00 

. 45,016 76 

Total , $66,265 27 

Total value of site, buildings, and personal 

property in the buildings , 609,948 97 

SCHEDULE II. 

BONDS, MORTGAGES AND OTHER SECURITIES FOR 
REVENUE, MAY 3 I, 1883. 

Bonds and mortgages, U. C $ r 37>503 22 

" u Nott Trust 16,050 00 

Bank stock, U. C 1,150 00 

" " Nott Trust 500 00 

Permanent leases * 7,4 J 3 48 

U. S. bonds 5,00000 

N. O. Pacific R. R. bonds, Parsons' fund .... 50,000 00 

Total $217,616 70 



6 

SCHEDULE III. 

The College has real estate in Schenectady, New York, 
and Oswego (other than that embraced in the College 
site, in Nott and Hunter's Point trusts), viz: 

In Schenectady $41,302 93 

In New York 29,450 00 

In Oswego „ 2,000 00 

Total • $72,752 93 

SCHEDULE IV. 

REAL ESTATE IN THE NOTT TRUST ENDOWMENT. 
Nott Trust, so called, was created in 1853 by the con- 
veyance by the late President Nott to the College, of all 
his interest in a large amount of real estate situate at 
and near Hunter's Point, opposite 34th street, New 
York city. This conveyance was in trust for certain Col- 
lege purposes. For simplicity this property is here con-, 
sidered at its value as College property. The accounts 
kept by the Treasurer rate it at a valuation of $649,232.86, 
exclusive of 22-666ths parts held by the College as dis- 
tinguished from Nott Trust. In i860, the Hunter's 
Point Trust, so called, was established. Other persons 
owned undivided interests in some of this property. It 
was thought to be advisable to bring all this property un- 
under one management, to the end that it might be 
graded and improved, and made available for the uses 
which its situation along the East river seemed inevitably 
to invite. All the other owners conveyed their interests 
to the College, which became the trustee for the man- 
agement and care of the entire property. It was repre- 
sented by 675 shares, of which the College owned one 
third or 225 shares. The College has been the trustee of 
this property ever since. Large sums of money have 
been expended upon it, and large sums have been re- 



7 

ceived from sales. By means of the purchase of 29 shares, 
and loans of money upon 138 others, equal to their salable 
value, the College has acquired 167 additional shares, 
and now owns 392 shares out of a total of 666 now re- 
maining, 22 of which belong to the College account, and 
370 to Nott Trust, 

It should be understood that the Hunter's Point Trust 
is not an added property of the College, but a scheme by 
which it was hoped its Nott Trust property could be man- 
aged to the best advantage. 

Dividends in the form of lots, bonds and mortgages, 
and money, have been made amony the shareholders 
from time to time, aggregating at the agreed value of 
the lots in these dividends, $1,250 per share, or $281,250 
upon the 225 shares originally held by the College, and 
§8,750 upon 7 ol the shares since acquired for Nott 
Trust, and $27,500 upon the 22 shares acquired upon the 
College account. Also $75,000 for preferred dividends 
or certificates, making the total dividend $392,500, which 
is now represented as follows : 

Securities, credit of Nott Trust, schedule II. $16,550 00 

Real estate, Nott Trust 184,450 00 

Real estate transferred to College account. . 191,500 00 

Total. . $392,500 00 

Nott Trust has in expectancy, dividend upon 
370 shares, supposed to be worth $1,000 
per share. . . . $370,000 00 

Union College upon 22 shares. .... 22,000 00 

Total on hand and to be received. .... $784,500 00 

The 167 additional share? have probably cost the col- 
lege, if interest be added to principal, about $1,000 per 
share or $167,000, leaving the net value of the Nott 
Trust property $617,500. In past years a considerable 



8 

income has been received from it r and applied to the 
support of the Nott Professorships. 

A judgment for the partition of the lands remaining 
undivided was obtained in 1882, and is now in process 
of execution. From this judgment it appears that there 
yet remain undivided 1,849 l°* s ? of which the college is 
the owner of 392-666ths part. The Commissioners ap- 
pointed by the court to make the division, appraise 
these lots at $983, 325^ but upon them there are liens for 
assessments for city improvements of the nominal 
amount of $666,042.26. 

These liens are represented by certificates of assess- 
ment which were issued by Long Island city in payment 
for the improvements, and are payable out of the assess- 
ments when collected. These certificates are sometimes 
in the market for sale at about one-half their face value. 
Every lot is liable for its separate assessment, but it is 
understood the owner is not also liable. 

The Commissioners report that some of the lots are 
worth more than the face of the assessment, and others 
less. For convenience the former are called plus lots, 
the latter minus lots. The Commissioners report that 
the value of the plus lots over these liens is $489,172.99 ; 
that the face value of the liens upon the minus lots ex- 
ceeds their value by $171,891.19. 

In the partition every owner will receive his ratable 
proportion of both plus and minus lots. 

The judgment awards the College : 

For commissions $20,100 93 

For advances 33,388 69 

Total $53,489 62 

Of which the College will collect from 

others 274-666ths, or 22,037 72 

And will have to pay its proportion of costs, 

say 5 ,000 00 

Leaving... _ $17,037 7 2 

in addition to its proportion of lands. 



If no reduction of the assessment Hens shall be effected, 
assuming the Commissioners' appraisal to be correct, the 
value of the College's interest in the plus lots is 
$287,633.71. At the depressed price of the "improve- 
iment certificates" there ought to be effected a drawback 
or salvage upon account of the assessment liens upon 
both the plus and minus lots, of at least $100,000. This 
would make the undivided interest of the College 
$387,633.71, or about one thousand dollars per share. 

SCHEDULE V. 

The Treasurer's report for 1883 states the indebted- 
ness of the College, being " bills payable," at $106,900, 
and of Nott Trust $4,020.74; total $110,920.74 

Items to be set off against the same as follows: 
Cash, U.C.... $20,276 81 

" Nott Trust 2,190 60 

Bills receivable, U. C. ......... ... 8,701 54 

Nott Trust 100 00 

L. I. Improvement certificates 2,852 53 

Proportion of commissions to be paid by other 

parties on account of Hunter's Point Trust, 17,037 71 



$51,159 19 
Net debt. 59,761 55 

RECAPITULATION. 

College site buildings and property there- 
in, schedule I $609,948 97 

Securities for revenue, schedule II 217,616 70 

Real estate other than Nott Trust, sche- 
dule III 72,752 93 

Real estate in Nott Trust, schedule IV. 554,450 00 

Real estate transferred to College for ad- 



ro 



varices, &c, including 22 shares in H. 

P. Trust, schedule IV 213,500 00 



$1,668,268 60 
Deduct balance of debts, schedule V. . . . 59,761 55 

Total value of all property, productive 

and unproductive $1,608,507 05 

The total liabilities for endowments and fund? of all 

kinds, not including Nott Trust, are $361,767.22. 

Excluding College site and property in schedule I, and 

the real and personal property in Nott Trust, and there 

remains $427,548.08 as security for these endowments. 

Note. — The report of 1849, before referred to, stated the entire wealth 
of the College at $604,340.56. 

INCOME. 
The income from rents and investments was 

in 1882-83 $18,907 90 

From students 8,074 3 1 

Other sources 2,549 61 

From Nott Trust 6,698 62 



,230 44 

The total expenditures for that year were $56,082.46, 
making a deficit of $19,852.02. 

Extra expenditures have been incurred in consequence 
of the peculiar difficulties of the past year ; and there 
has been a hesitancy to begin retrenchment, lest such 
action should be misconstrued. 

REMARKS. 

The College has large and commodious buildings 

amply equipped with appliances for instruction. It has 

extensive grounds, whose rare natural beauties, art, 

labor and time have greatly enhanced. It is seen that 



II 

its revenues are derived from its students, and from 
such of its capital as is interest bearing and rent pro- 
ducing ; that a greater part of its capital is still unpro- 
ductive ; that its present revenues are insufficient to 
maintain the ample corps of instructors with which it is 
supplied, and which are so suitable to its rank. Its 
financial ability for the future seems largely to depend, 
independently of the benefactions of friends, upon the 
outcome of the Nott Trust real estate. It is thirty years 
since this property came to the college, and it is still a 
problem what can best be done with it. To rent it 
upon long leases at a moderate rent would probably ulti- 
mately result in making the College rich, but it is dis- 
couraging that so small a return is realized from so large 
a property. 

The inflation of values which culminated about 1873, 
seemed to encourage and justify a scale of expenditure, 
which it would be unfair now to judge solely in the light 
of the subsequent depression ; a depression from which 
our property seems, now to be slowly emerging. 

The College is conducted and has been for years at a 
loss, if we compare the actual income from its own cer- 
tain resources with the expenditure. 

This has been thought to be permissible in view of a 
supposed appreciation in the value of its real estate equal 
to the annual deficit, and in the hope that the financial 
depression would be followed by better times. 

The Trustees are confronted with the grave question, 
whether this state of things can be longer safely contin- 
ued. 

In making an examination of the transactions of the 
College relating to Nott Trust, to Hunter's Point Trust, 
to Memorial Hall, to donations, to endowments, and to 
the employment of College money, the permanent mem- 
bers of the Board are reminded that a majority of their 
number has been called into the Board within the past six 



LIBRARY OF CONGRESS 

028 305 555 3 



years, and the solemn fact confronts them that only two 
remain who were Trustees in 1870. They are unwilling to 
criticise the action of the honorable men now removed 
by death, whose influence in the affairs of the College 
was second only to their known devotion to its interests. 
Rather, they are inclined to congratulate themselves that 
the College comes to their care with so large a measure 
of the fruits of former years and labor. They are in- 
clined to study the records of past successes and disap- 
pointments for the purposes of instruction, not of recrim- 
ination. They rely upon the co-operation and confi- 
dence of the Alumni in keeping the College steadily and 
prosperously in the front rank of the successful educators 
of young men. 

J. S. LANDON, 
W. H. H. MOORE, 
J. L. WOODWARD, 

Committee. 



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